In a bid to protect consumers from difficult and expensive cancellation fees, the Federal Trade Commission (FTC) is proposing a ban on tough-to-cancel gym and cable subscriptions.
It’s no secret that many gym members and cable subscription holders find it tough to cancel their memberships. Whether it’s hidden fees, long wait times on hold, or complex cancellation processes, customers often find it difficult to get out of their contracts.
The FTC is proposing to put an end to this. Under their proposed new rules, the agency is asking gyms, cable and satellite companies, and other subscription-based businesses to allow their customers to cancel their plans easily and quickly.
The proposal also would end the practice of companies charging cancellation fees, known as “abandonment fees,” when customers decide to end their plans. The FTC also wants to prevent companies from tying customers into contracts that are barely distinguishable from long-term contracts.
If these new rules were to be implemented, it would drastically change the way the industry operates. Companies would have to update their policies around canceling contracts, and customers would be more in control of their subscription services.
The FTC’s proposal comes at a time when subscription-based services are becoming increasingly popular. Services such as Netflix and Hulu have amassed millions of customers, but the landscape is changing rapidly as companies such as Apple and Disney launch their own subscription services.
The move is also a welcome one for consumers. It would put customers in control of their memberships and subscriptions and give them peace of mind that they won’t be held to contracts they don’t want.
It remains to be seen if the proposal will be implemented, but if it is, it could be a positive shift in the industry, one that puts customers first.
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